HWIC added mega brands()MB)

[warrior]

According to  Globe and Mail

 

"Between Sept. 12 and Sept. 14, board chair Victor J. Bertrand bought 400,000 shares in the public market at an average price of $9.14. Institutional investor Fairfax Financial Holdings Ltd. also bought 323,337 shares on Sept. 14"

[FrankArabia]

what exactly do they see in this company? looks at best like a cigar butt....more like a ciggerette butt though

[warrior]

Frank Arabia,

Prem has  invested in MB- stocks and debentures, I think it was at the same time when they invested into Brick ( as we all know brick investment worked  very well for them). Both companies were turnaround stories.

  In 2007 MB had bought Rose ART in US, and all, what could go wrong went wrong…

CEO was at our shareholders dinner this year, and as I remember  he was  enthusiastic about prospect.

In fact, MB had made some progress in its turnaround plan, and

recent observations at retail are encouraging. The construction category continues to perform well, and recent licensing deals with Barbie and HOT Wheels should add some firepower.

Valuation is cheap, assuming the conversation of warrants and paying out debts . Management confirmed that they will p/o debt  from the conversation of warrants. Warrants are expired in 2015.

Bertrand family own and run the operation.

the management will have to  work hard on all the turnaround process and be able to compete . for now ,I consider this enterprise  as a  mediocre, management failed on many occasions to deliver… I would agree that it is a cigar butt . 

 

Why Prem invested?  I do not know. the fact is that he rescued MB , if he did not do it . I’m not sure if MB would exist today. In my view, he should have taken MB private.  Francis Chou has invested as well , he loves cigar butts ("as long one right 6 times out of 10" ).

Cheers.

 

[FFHWatcher]

what exactly do they see in this company? looks at best like a cigar butt....more like a ciggerette butt though

 

Frank, please define how you use the term cigar butt.  Someone else (maybe you) used it recently to discuss another company and I didn't exactly understand how they were using it.  As for MB, they screwed up buying Rose Art.  It sank the company, FFH participated in a recapitalization transaction (perhaps two of them?).  If you reverse out the Rose Art transaction and the business that they picked up with that purchase that lead to the major class action lawsuit against them, MB has been an ok operator.  I think most would agree that MB is turning the corner on profitability (not just a final puff), which is why I don't really understand how you are using the phrase.

 

Perhaps you are using Cigar Butt to describe a stock chart that declines and declines, ....  or perhaps you just like the term?  Have you followed/read their financial reports that describes their business, sales, margins, debt, etc. over the past couple of years?